Elevance Health beat the Street on profit in the fourth quarter of 2025, though a revenue miss generated mixed results.
The company reported $547 million in profit for the fourth quarter, up from $418 million in the prior-year quarter and surpassing Wall Street analysts’ estimates, per Zacks Investment Research. However, the $49.3 billion tally for revenue in the fourth quarter fell short of analysts’ expectations.
It did mark nearly 10% growth year over year, as Elevance Health reported $45 billion in revenue for the fourth quarter of 2024.
For the full year, Elevance Health brought in $197.6 billion in revenue, up 12.8% from 2024’s $175.2 billion haul. Profits were down by 5.3% compared to 2024, decreasing from $6 billion to $5.7 billion.
Elevated utilization and medical costs continued to ding Elevance Health and its peers, with the company reporting a medical loss ratio of 93.5% in the fourth quarter. Yesterday morning, industry giant UnitedHealth Group also noted the higher-than-expected cost trend would likely carry through the year.
CEO Gail Boudreaux said in a press release that as 2026 gets underway, the company is focused on getting back to its growth targets, even in a challenging environment.
“As we enter 2026, our focus is on advancing affordability and making healthcare easier to access and navigate for the members we serve,” she said. “Through pricing discipline and targeted investments, we are strengthening the earnings power of our diversified platform and remain confident in our ability to return to at least 12% adjusted EPS growth in 2027.”
Operating revenues at the company’s health benefit segment, representing its Anthem and Wellpoint health plans, were $41.8 billion in the fourth quarter, up by 11% year over year from $37.6 billion in the fourth quarter of 2024. Elevance said the growth was backed by higher premium yields, new acquisitions and growth in Medicare, through membership losses in Medicaid partially offset these trends.
The insurer reported 45.2 million members as of Dec. 31, down by about 500,000 due mostly to Medicaid attrition.
Elevance Health’s Carelon unit continues to build momentum, according to the report, with operating revenues of $18.7 billion in the fourth quarter of 2025. That’s up 27% compared to the prior-year quarter, where revenues were $14.7 billion.
The company said that jump reflects growth at both CarelonRx and at Carelon Services’ risk-based program along with its acquisition of CareBridge.
For 2026, the company expects at least $25.50 in earnings per share, a modest estimate following full-year earnings in 2025 of $30.29 per share. It did not provide specific revenue numbers but projects a “low single digit decline” as well as an MLR for 2026 of about 90.2%.
Publisher: Source link
